Contract Compliance & Management Flashcards
7 cards from real CCB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Compliance & Management flashcards as text
A vendor consistently delivers goods two days late but within the contract's allowable variance window. What is the compliance team's most appropriate action?
Answer: Document the pattern and issue a formal notice of concern
Even when delays fall within allowable variance, a recurring pattern warrants documentation and a formal notice to prevent future material breaches.
Which contract clause specifically defines what happens when a party cannot perform due to an unforeseeable event like a natural disaster?
Answer: Force majeure clause
A force majeure clause excuses a party's non-performance when extraordinary events beyond their control make performance impossible.
During a contract audit, you discover the supplier billed for services not listed in the statement of work (SOW). This is best classified as:
Answer: Scope creep billing fraud
Billing for services outside the SOW without a formal change order constitutes scope creep and potentially fraudulent billing.
What is the primary purpose of a contract's 'entire agreement' (merger) clause?
Answer: To state that the written contract supersedes all prior negotiations and agreements
A merger clause establishes that the written contract represents the complete and final agreement, invalidating prior oral or written negotiations.
A subcontractor on a government contract fails to comply with the required labor standards. Who bears primary compliance responsibility?
Answer: The prime contractor
The prime contractor is responsible for ensuring all subcontractors comply with applicable labor standards and contract flow-down requirements.
Which of the following best describes 'contract novation'?
Answer: Transferring all rights and obligations from one party to a new third party
Novation replaces an original party with a new party, transferring all rights and obligations with consent from all parties involved.
An organization wants to ensure a supplier meets cybersecurity standards throughout the contract period, not just at signing. Which mechanism is most effective?
Answer: Annual third-party security assessments as a contract requirement
Requiring periodic third-party security assessments as a contractual obligation ensures ongoing cybersecurity compliance throughout the contract lifecycle.